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TMI BlogRole of Vienna Convention in Application and Interpretation of Tax TreatiesX X X X Extracts X X X X X X X X Extracts X X X X ..... of the Law of Treaties, 1969 provides that a "treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose." While India is not a party to the Vienna Convention, it contains many principles of customary international law, and the principle of interpretation, of Article 31 of the Vienna Convention, provides a broad guideline as to what could be an appropriate manner of interpreting a treaty in the Indian context also". Therefore, it would be worthy to understand some of the Articles of the Vienna Convention of Law of Treaties which would help appreciate the manner of application and interpretation of tax treaties. Princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by first giving the ordinary meaning to the language. It is only if the ordinary meaning is ambiguous, or leads to illogical results, that the purpose may be considered. * The context for the purpose of interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexure * Any agreement relating to the treaty which was made between all the parties in connection with the conclusion of the treaty; * Any instrument which was made by one or more parties in connection with the conclusion of the treaty and accepted by the other parties as an instrument related thereto. * The following shall be taken into account, together with the context in that: * Any subsequent agreement between the parties regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with paragraph 1, when a comparison of the authentic texts discloses a difference in meaning which the application of Articles 31 and 32 does not remove, the meaning which best reconciles the texts, having regard to the object and purpose of the treaty, shall be adopted. 34 General Rule regarding third states A treaty does not create either obligations or rights for a third State without its consent. 42 Validity and Continuance in force of treaties * The validity of a treaty or of the consent of a State to be bound by a treaty may be impeached only through the application of the Convention. * The termination of a treaty, its denunciation or the withdrawal of a party may take place only as a result of the application of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of the treaty. * The foregoing paragraphs are without prejudice to any provision in the treaty applicable in the event of a breach. 61 Supervening impossibility of performance * A party may invoke the impossibility of performing provision of a treaty as a ground for terminating or withdrawing from it, if the impossibility results from the permanent disappearance or destruction of an object indispensable for the execution of the treaty. If the impossibility is temporary, it may be invoked only as a ground for suspending its operation. * Impossibility of performance may not be invoked by a party as a ground for terminating, withdrawing from or suspending the operation of a treaty if the impossibility is the result of a breach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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